March Totals 80,000 Jobs Lost
The Labor Department on Friday said nonfarm employment fell by 80,000 jobs in March, more than expected and the biggest drop in five years. Financial markets saw this as reinforcing the need for further Federal Reserve interest rate cuts.
Adding to the bleak picture, the Labor Department said a total of 152,000 jobs were lost in January and February, sharply above the prior estimate of 85,000, and the jobless rate jumped to 5.1% from 4.8%, the highest since September 2005. Construction employment fell 51,000, the ninth consecutive month of job losses.
Factory employment fell by 48,000, the biggest decline since July 2003, exacerbated by a 24,000 fall in auto manufacturing jobs that the department said likely reflected the impact of a strike at an auto parts maker. Most economists, having seen a third monthly decline, were now convinced that the economy is in recession.
The numbers drew calls from Democratic presidential hopefuls Hillary Clinton and Barack Obama for aid to families facing foreclosure on their homes, while Republican candidate Senator John McCain said tax cuts and streamlining burdensome regulations were needed to foster growth.
A New York Times/CBS News poll released on Friday showed the economy’s deepening woes were weighing heavily on the minds of Americans. Of those polled, 81% said they believed things were “pretty seriously” on the wrong track, up from 69% a year ago and 35% in early 2002.
